Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant,and Loonzain. Budgeted sales by product and in total for the coming month are shown below:ProductPercentage of total salesWhite48%Fragrant20%Loonzain32%Total100%SalesVariable expenses$ 369,600110,880100%30%$ 154,000123,200100%80%Contribution marginFixed expensesNet operating income$ 258,72070%$ 30,80020%$ 246,400135,520$ 110,880100%55%45%$ 770,000369,600100%48%400,40052%226,720$ 173,680Dollar sales to break-even - Fixed expenses / CM ratio = $226,720/0.52 = $436,000As shown by these data, net operating income is budgeted at $173,680 for the month and the estimated break-even sales is$436,000.Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400;Fragrant, $308,000; and Loonzain, $215,600.Required:1. Prepare a contribution format income statement for the month based on the actual sales data.2. Compute the break-even point in dollar sales for the month based on your actual data.

1.)- The contribution margin is calculated by subtracting variable expenses from sales.- The net…

Answered: Gold Star Rice, Limited, of Thailand…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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